Why GroupOn Deals For Carpet Cleaning Can Ruin Your Day!

If you are anything like me, your inbox is full of Carpet Cleaning Deals from Groupon, Living Social or Amazon Local.  You may have even been tempted to take advantage of one of these offers and I get it, we all want to save money, but my question is…

…..What Are You Giving Up For The Deal?

Is the idea of “saving some money” worth the inevitable frustration of dealing with high pressure sales tactics or low quality work?

I think most of you would answer NO!  So why then do we keep running back to these deal sites?

Probably for the same reason that so many keep running back to the lottery, professional cleaning even though we all know we are more likely to be struck by lighting than to win the lotto.

On a side note, do you think the winners of the lottery ever go out in a thunder storm again?

In This Video I Explain Why…

Businesses And Customers Lose With GroupOn Carpet Cleaning Deals

Before I show you the video, I want to make sure you realize that I have run one of these ads so that I would know exactly how they work before I wrote this article.  Here is the link, but don’t buy the deal, it has expired.

https://www.livingsocial.com/cities/576-west-valley-arizona/deals/1310644-carpet-cleaning-for-three-rooms

Now please understand, I am not against Groupon, Living Social, or Amazon Local, they can be awesome for certain industries.  Here are a few they work great in.

Restaurants, Movie Tickets, Fitness Classes, or just about any event are great ways to use deal sites.   Those type of businesses have a much higher “static” business expense than they do “variable” business expense.  So they don’t really lose anything by selling something at cost to bring in a future customer.

I will talk more about “static” and “variable” expenses below.

GroupOn Deals Simply Don’t Work For Carpet Cleaners…

….if they know their numbers!

Warning…..Unless you are extremely analytical and love numbers the following information will bore you to death!

 You should just call Integrity Cleaning Systems now to schedule your appointment at 602-486-3966

For those brave souls that are still reading, here we go!

Service companies have two primary areas of expenses.  Static expenses and variable expenses.

STATIC EXPENSES:  These expenses have to be paid every day regardless if any work was performed that day.

These would include:

Lease payment on vehicle and equipment

Insurance – vehicle and liability

Phone – landline and cell phone

Internet

Web Hosting

Marketing Expenses – SEO work, website development, social media management, every door direct mail, email program ect.

Online contact manager and scheduler

When you add up all these expenses and divide them into a six hour production day (other time spent driving), every production hour the static expenses cost my company is about $20.00.

 

VARIABLE EXPENSES – These expenses relate directly to the work being performed

Fuel – Both for travel and 2 gallon per hour that I run my equipment

Chemical Cost

Maintenance:  On van and equipment

Labor:  Includes payroll, payroll taxes, workman’s comp ect

When you average these cost into a per production hour expense it is about $65 an hour

As you can see if I spend an hour in my office with no production I will lose $20.00 on the static expenses, but I am not paying the variable expenses.  I also have the bonus of spending that time creating marketing that will bring in good jobs.

If I work on a Carpet Cleaning Group On Deal as written in the offer.  I will have the static expenses of $20 and the variable expenses of $65 and the deal only paid me $35.  This cbd products if I take the job I lose $50, if I don’t take the job I only lose $20.   This is making the assumption that the job only takes me one hour.

So as you can see I would either be forced into using high pressure sales tactics to increase my price or work so quickly that quality becomes impossible or lose money.  No business will choose the third option.

I hope this will help you see through some of the hype around GroupOn, Living Social or Amazon Local Carpet Cleaning Deal.

By the way, if you would like to see the awesome special offer we make to every new client please click here

Sincerely,

Travis Miklethun
Owner – Integrity Cleaning Systems

 

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